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REALTOR®: Home sales surge in Silicon Valley

Wednesday, December 12, 2012

The Silicon Valley housing market is heating up – not just in pocket areas, but at the macro level, according to MLSListings Inc., the multiple listing service of the Silicon Valley Association of REALTORS® (SILVAR). California home buyers are also much more optimistic about the future of the housing market than they were three years ago.

The MLSListings November market data report shows double-digit, year over year increases in three of five counties representing 85 percent of November home sales. Total sales for the greater Bay Area were up 12.7 percent over year-ago sales. In fact, the number of sales has risen more than 75 percent above 2007 levels, according to the MLS.

Median price continues to rise in all counties, led by San Benito with an increase of 49 percent over year-ago levels. Both Monterey and Santa Clara County median price rose 20 percent, Santa Cruz grew 10 percent, and San Mateo is up 5 percent above year-ago levels. New listings fell across the board except in San Mateo County where they remained flat compared to last year, and as one might expect, days on market continue to drop year-over-year in all Counties.

November 2012 sales of single-family homes in Santa Clara County were up 18 percent from November last year and the median price of $679,500 was a jump of 20 percent from the $565,000 median a year ago. The county has half the inventory it had last year and days on market have dropped to nearly half the time, as well.

In San Mateo County, sales of single-family homes in November were up 17 percent from November 2011, and the November median of $473,750 was 45 percent higher from the median price of $327,500 a year ago. Inventory in San Mateo County is down 45 percent from last year and days on market dropped from 66 to 38.

Another significant sign of an improving housing market is California home buyers are much more optimistic about the housing market now than they were three years ago. According to the California Association of REALTORS® (C.A.R.) "2012 Survey of California Home Buyers," more home buyers this year believe that home prices will rise, with 25 percent saying prices will rise in one year; 41 percent saying they will rise in five years; and nearly three-fourths of buyers (73 percent) believing home prices will rise in 10 years. This compares to only eight percent, 35 percent, and 60 percent, respectively, in 2009, when the question was first asked.

The survey also found that the mortgage interest deduction is extremely important to home buyers across all income levels and age groups, with 79 percent of all home buyers saying that the mortgage interest and property tax deductions are "extremely important" in their decision to purchase a home.

"There is no doubt that our housing market is recovering nicely and the mortgage interest deduction matters to most Americans. This is why it is very important that Congress realize any changes to the mortgage interest deduction now or in the future could place the housing market and our nation's economy at risk, and close the door on the American dream for many Americans," says SILVAR president Suzanne Yost.


The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.

The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.

Variations of this article have appeared in local area newspapers.

For further information, please contact Rose Meily at SILVAR Public Affairs, email , or phone (408) 200-0109.

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